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Nashua Corporation Announces Ruling in Cerion Litigation

NASHUA, NH -- (MARKET WIRE) -- December 5, 2006 -- Nashua Corporation (NASDAQ: NSHA), a
manufacturer and marketer of labels and specialty papers today announced
that on November 29, 2006 the Supreme Court of Illinois declined to hear
the appeal by the plaintiffs in a case against Cerion Technologies, Inc.,
Nashua Corporation, and others. Earlier this year, the Appellate Court of
Illinois had dismissed the plaintiffs' appeal of an August 16, 2005 Order
of the Circuit Court of Cook County, which had granted defendants' motion
for summary judgment. On August 4, 2006, the plaintiffs filed a petition
with the Supreme Court of Illinois for leave to appeal the Appellate
Court's order.

The suit was initially filed by Phillippe Olczyk and others in 1996. The
original complaint alleged that Cerion Technologies, Inc., a former
subsidiary of Nashua Corporation, had issued materially false and
misleading statements and omitted the disclosure of certain material facts
in connection with its initial public offering (IPO). The defendants
denied any wrongdoing regarding statements about Cerion Technologies Inc.,
which ceased operations in November 1998.

Tom Brooker, Nashua's President and Chief Executive Officer said: "We are
pleased with the Supreme Court's decision, which resolves a long-standing
legacy issue."

About Nashua

Nashua Corporation manufactures and markets a wide variety of specialty
imaging products and services to industrial and commercial customers to
meet various print application needs. The Company's products include
thermal coated papers, pressure-sensitive labels, bond, point of sale, ATM
and wide format papers, entertainment tickets, as well as ribbons for use
in imaging devices. Additional information about Nashua Corporation can be
found at: www.Nashua.com.

Forward-looking Statements

This press release contains forward-looking statements as that term is
defined in the Private Securities Litigation Reform Act of 1995. When used
in this press release, the words "plan," "should," "will," "expects,"
"anticipates" and similar expressions are intended to identify such
forward-looking statements. Such forward-looking statements are subject to
risks and uncertainties, which could cause actual results to differ
materially from those anticipated. Such risks and uncertainties include,
but are not limited to, the Company's future capital needs and resources,
fluctuations in customer demand, intensity of competition from other
vendors, timing and acceptance of new product introductions, delays or
difficulties in programs designed to increase sales and profitability,
general economic and industry conditions, the settlement of various tax
issues, and other risks set forth in the Company's filings with the
Securities and Exchange Commission, and the information set forth herein
should be read in light of such risks. In addition, any forward-looking
statements represent the Company's estimates only as of the date of this
press release and should not be relied upon as representing the Company's
estimates as of any subsequent date. While the Company may elect to update
forward-looking statements at some point in the future, the Company
specifically disclaims any obligation to do so, even if its estimates
change.